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Home sales in Bend, Oregon, have gone through different changes after the pandemic. Oregon's market, in general, was one of the most popular ones recently, as home values started to increase.
However, since early 2023, the market has started to slowly decline again after a spike in January. Factors like low inventory levels and rising mortgage interest rates have affected the market even in the most popular neighborhoods in Bend.
If you want more detailed information about home prices in Bend, Oregon, this is the page for you. Here, we'll go through everything buyers should know before investing in Bend's housing market. Whether you're looking to invest in Northwest Crossing or any other popular areas in the city, you'll find this information helpful.
Trends You Should Know Regarding the Bend Housing Market
Currently, Bend is a relatively competitive housing market, compared to other big cities in the U.S. The tail end of 2022 showed a significant drop in home prices, but as of January 2023, the market started to recover, and it's currently stabilizing.
Let's look at some interesting trends surrounding the real estate market in Bend, Oregon. This will help you understand what has changed since last year and what you can expect for the following months.
Median Sale Price
According to data from Redfin, the median sale price in Bend, Oregon, is $665K as of April 2023; an 11.8% decrease year-over-year. On the other hand, data from Realtor.com shows a median listing home price of $872K and a median price per square foot of $432.
This ratio suggests that the average home in Bend, Oregon, sells above/below its asking price, depending on the case.
Number of Homes Sold
In April 2023, there were 141 homes sold in Bend, Oregon. As a comparison, last year's data shows approximately 234 homes sold during the April period.
Overall, we have a 39.7% decrease compared to last year.
Median Days on the Market
Currently, the average home in Bend sells after 16 days on the market compared to six days last year. The fact that homes take more than double to sell may be due to high mortgage rates, multiple offers from buyers, or other similar reasons.
Sale-to-List Price
The sale-to-list ratio can help us determine whether Bend is a seller's or a buyer's market. According to Redfin, the current ratio is 99.8%, which suggests that we're in a relatively balanced market where buyers and sellers have equal opportunities to negotiate better deals.
About 25.5% of homes in Bend sold above their listing price, whereas 22.6% sold below their listing price. This ratio suggests that sellers have the upper hand when it comes to certain negotiations. However, the difference is not so big in comparison to other cities.
Overall, we can argue that the Bend, Oregon, housing market is still balanced, all things considered. Sellers could have more opportunities to negotiate certain deals, but buyers still have access to many options, allowing them to find better prices.
What's Affecting Bend's Real Estate Market?
Now that we know the most recent trends in the Bend, Oregon, real estate market, let's look at the most common factors that drive these changes.
Understanding what makes a market change will make it easier for you to predict what could happen in the future.
Mortgage Rates/Interest Rates
As mentioned, all regions in the U.S. are experiencing high mortgage rates, which has affected most housing markets. Bend, Oregon, is not an exception.
Depending on the case, higher rates could cool off a market, but if the housing supply is too high compared to the demand, then it could be at risk of crashing. This is not the case with Bend, though.
Currently, there's a low housing stock in Bend (as well as in other parts of Oregon), and compared with the high demand, you can expect the market to remain active even during these hard times.
In other words, mortgage rates certainly affect how fast a housing market grows, but considering Bend, Oregon, homes are still getting multiple offers despite these trends, there's no need to worry too much.
Demographics
Demographics can help you evaluate which people groups are more likely to purchase in certain areas in Bend, Oregon. Most of the time, demographics are sorted by age, income, gender, and other factors.
Supply and Demand
In Bend, Oregon, there seems to be more supply than demand, which could suggest it's a seller's market. However, recent trends have balanced the market more, and even though sellers still have the upper hand in some negotiations, buyers are now getting access to more investment options within the city.
Government Policies
Different types of government interventions, such as taxation, subsidies, and general decisions can affect how a housing market behaves.
In other words, you can expect price changes if the local, regional, or national government makes a decision that directly or indirectly affects the market.
Is the Bend Housing Market Going to Crash?
Considering all the data we just reviewed, it's not likely for Bend's housing market to crash soon. The rising rates could suggest the market could crash any moment, however, since there's now a better balance in supply and demand, we don't think a crash is likely.
Average home prices are supported by the high demand even though rates are high. Some buyers may have been priced out of the market because of this particular trend, but recent activity suggests that many other people can still afford homes in Bend.
Oregon, in general, is experiencing population growth, which increases the demand for housing even more.
While we can expect a slowdown in Bend, Oregon's market for the following months, we don't think it'll be enough to cause a crash. However, we suggest you do proper research before making any big decision.
Statistics About Bend's Housing Market You Should Consider
Here are more statistics about the Bend, Oregon, real estate market that can help you make a better investment decision:
- According to Redfin, hot homes in Bend can sell for 1% above their listing price. Furthermore, they can go pending in as little as five days.
- Approximately 65% of homebuyers in the area have looked to stay within Bend's metro area.
- The 35% of buyers who want to move out of Bend, Oregon, are considering cities like Phoenix, AZ, Hilo, HI, Brookings, OR, and Jacksonville, FL.
- As of 2023, about 17% of existing homes in Bend, Oregon, are at risk of flooding.
- According to Realtor.com, there are approximately 31 public schools with high ratings in Bend, and there are at least 16 private/charter schools to consider too.
- Orchard District is the most affordable neighborhood in the city. It has a median listing price of $599.9K
- Aubrey Butte is the most expensive neighborhood, with a median price of $1.4M.
Market Predictions for Bend, Oregon, in 2023
Even though home values in Bend are expected to decrease during the second half of 2023 and early 2024, the overall forecast for the state is positive.
The market could remain balanced throughout 2023 with slight changes. If the interest rates go lower, for example, buyers could have a better chance of affording more properties, which will increase competition and keep the market active.
Predicting what will happen with Bend's housing market can be complicated, especially considering it can be affected by other factors besides interest rates, including its economy, supply and demand, and more.
If you're planning on making a short-term investment, then Bend may not be such a good option compared to other cities due to its recent trends. However, if you're instead hoping for a long-term investment, you may have a better chance of getting optimal returns on your purchase.
We suggest you talk to a real estate agent if you want to make a smarter investment decision, as these experts can help you evaluate the current market conditions and adapt them to your particular case.
Bottom Line - Is Bend, Oregon, a Good Market to Invest in?
Currently, Bend offers plenty of opportunities for both buyers and sellers, and even though sellers may have a slight advantage on certain occasions, you will still be able to sort through different options until you find a great one to negotiate.
If you want to ensure the best housing offers in Bend, premier real estate agents could help you make a smarter decision if you're willing to spend some extra money.
Still, you can research on your own and come up with your conclusions regarding the market. In the end, certain markets will only be good for you if they suit your particular needs, goals, or budget.
FAQs
Are Home Prices in Bend, Oregon, Dropping?
Yes, home prices in the city have experienced a slight decline after January 2023.
Why Are So Many People Moving to Bend, Oregon?
This trend may be due to many reasons, including:
- Many job opportunities
- Remote work options
- New construction
- Natural beauty
Is Bend, Oregon, Overvalued?
Even though Bend is currently experiencing drops in home prices, it's still considered, by many, one of the most overvalued housing markets in the country.
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